UBS, for one, thinks the company should make a splashy acquisition – one that could exceed a whopping $160 billion. The bank arrives at that figure by factoring in the record $109 billion of cash Berkshire had on hand at the start of February, and combining it with the company’s strong free cash flow.

As for which industry Berkshire may pursue, UBS thinks utilities are a good bet. After all, the company’s energy unit made an unsuccessful $9 billion offer for the electricity provider Oncor last year and may still be interested in the sector.

There is, however, one possible impediment, which is that equities are trading at high valuations, UBS says. The firm notes this could make some potential targets prohibitively expensive.

With that said, Berkshire’s own lofty valuation could prevent it from using its cash to buy back its own shares, UBS says. That makes it even more likely that the firm will use its capital on something other than buybacks – like M&A. Stay tuned.